E Market Briefing For Wednesday, Dec. 23

'Stark relief' - characterized this interesting session. First the market's failure to favorably respond to the much-delayed (and uninspiring) 'Relief Package', basically suggests it was discounted and totally factored-in as a must-occur.

Secondly, President-elect Biden's stark 'the worst of times are still ahead' comments, are absolutely true 'for cases' (mortality rates are lower due to a bit better care, but it's very difficult when the numbers zoom so much higher).

That reflects how bleak things have gotten, as some hospital Administrators in California (for instance) note they will be like New York City at the heart back in March when they were overwhelmed with cases.

So sure, with Christmas in the wings, and heavy caseloads expected 'after' the holidays too (because so many are traveling or somehow rationalizing their more outgoing behavior), it is not unusual that President-elect Biden is saying the worst is ahead. I've pointed out for some time the ying-and-yang of the hopium from vaccines versus the reality of expanding cases, for now.

Executive summary:

  • S&P  (SPX) was defensive but not devastating as interesting dichotomy occurs in ways that impact individual stocks as the broad market remains jittery.
  • The behavior of the VIX (VIX) especially yesterday reflects trader 'edginess'.
  • Oil was down a bit following Brent (BNO) and a Crude Build here, generally at the price zone we targeted and didn't expect higher oil (OIL) for now anyway,
  • One big story is an indirect 'off-shoot' of LiDar, as we have been strongly enthused about, and tried to convey both the technical and fundamental untapped value in, and that's LightPath Technologies (LPTH).
  • Since last week's million share technical breakout day, I suggested that ensuing LPTH light-volume was a healthy consolidation with a breakout coming into the 4's (or higher. especially over time, in stair-step fashion),
  • Today was LightPath's 'first' 2 million share day, and it was incredibly up a rousing 40%, to place it among the most-up NASDAQ stocks, and I noted during the day that there never was much profit-taking, interesting.
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